Tuesday, February 2, 2010

First of many laughable aspects to the administration's 2011 budget

The laughable title of Obama's 2011 budget is "A New Era of Responsibility." That's some pretty amazing unintentional comedy, exemplified by the fraudulent non-accounting for climate taxes.

The budget explains away the blank lines next to "Allowance for Climate Policy" by saying it's deficit-neutral (i.e. any climate taxes will be spent on helping families adjust to higher energy costs, etc). By that rationale, why not exclude ANY new tax, if it's going to be redistributed?

Phil Kerpen points out the "climate slush fund" embedded in the tables at the end of the budget.

"The blank line is labeled: “Allowance for climate policy.” There is no disclosure in the new budget of the revenue expected, but as recently as August 25, 2009 (in Obama’s 2010 Mid-Session Review) the administration counted on $627 billion in “climate revenues” between 2012 and 2019.

The 2011 budget tries to explain away the costs of cap-and-trade a footnote (p. 4) that says all of the revenue will be spent -- claiming climate policy is therefore deficit neutral:

“A comprehensive market-based climate change policy will be deficit neutral because proceeds from emissions allowances will be used to compensate vulnerable families, communities, and businesses during the transition to a clean energy economy. Receipts will also be reserved for investments to reduce greenhouse gas emissions, including support of clean energy technologies, and in adapting to the impacts of climate change, both domestically and in developing countries.”

But deficit neutrality is beside the point. This is a budget; it’s supposed to show us the total amount of revenue planned and what it’s going to be spent on. The blank line with the above footnote is simply a promise to spend every penny of this huge new tax hike. "